If you have bought a boat, you will definitely want to know about these three points to consider.
It is incredibly important to insure your most valuable assets, and a boat definitely makes the cut as a valuable asset!
The following three points are something you should keep in mind when you are going through the boat insurance process. As with any insurance issue you will want to find the most affordable deal with the most reliable insurer.
It is important that you follow this advice and that you always think carefully and read all of the fine print before you sign or agree to anything.
Point number one: Choose your insurer carefully
While most large insurance companies will offer cover for anything from your house to your car, flat screen TV to your new boat, you may want to consider going with a smaller, lesser-known marine specialist insurance company.
The reason that this may be a good idea is that while almost all individuals have a working understanding of how cars and other vehicles operate, the different between older models, newer models and different makes and what the risks of damage are, not many companies or people understand boats as intricately.
It is thus important that you think about going for a smaller company who understands boats, the way they work and what the risks are so that you can be assured of a package that will suit your needs and your particular craft.
This does happen!
Point number two: Insist that your boat insurance cover is tailored to the type of craft you have
This point follows on from the one above.
Make sure that the insurance company you decide to use offers you a package that takes the following points into consideration:
- The age of your boat
- The make and model
- Where and how often you use your boat
- Where it is stored when it is not being used
The smaller marine focused insurance companies will be more likely to provide you with a tailored package.
Point number three: Decide between the agreed value and the actual cash value options
The actual cash value option for boat insurance means a lower monthly premium. However, it also means that in the event of a total loss of the boat, the insurer will only pay out the actual cash value of the boat at the time of the loss.
The agreed cash value means a substantially higher monthly premium, but if you were to lose your boat completely in an accident or a theft, the insurance company would pay out the agreed amount that you have settled on as well as replace any other items that may have been lost with the boat with brand new ones.
If you have an expensive, brand new boat kitted out with the very best gear, and if you use it regularly, it may be a good idea to go for the more expensive agreed cash value option.
However, if your boat is older, less impressive and used less regularly, the actual cash value insurance option would probably suit you better. Whichever option you chose, discuss it thoroughly with your insurer first.
Why should you insure your boat?
It’s a very expensive asset and you do not want to risk losing it completely in an boat accident, theft or fire.
Because many people only use their boats very rarely, they are often stored at holiday homes or at locations that are not visited by the owner very often. This means that the theft of boats is fairly common.
You would not want this to happen to you! It is thus a very good idea to insure your marine craft properly from the very beginning.